GM Canada plans to slash labor costs

[DainBramaged]

General Motors of Canada is set for a battle with its unions as it plans to regain its competitive advantage by cutting back on paid time off, allowing temporary workers, and getting rid of strict work rules, a Canadian national newspaper reported Friday.

A background paper released by the automaker details plans to eliminate a C$30-an-hour labor cost advantage versus U.S. plants operated by Japanese-based competitors, the Globe and Mail said.

The moves will most certainly be challenged by the Canadian Auto Workers union, which has repeatedly said that it will not allow a two-tiered wage system like the one the United Auto Workers in the United States agreed to last year.

Contract negotiations between the Detroit Three auto-makers and the CAW begin this summer.

http://www.reportonbusiness.com/servlet/story/RTGAM.20080418.wrgm18/BNStory/Business/home

General Motors of Canada Ltd. is seeking a “transformational” change in its operations by reducing paid time off, allowing temporary workers and eliminating strict work rules, moves that almost certainly put it on a collision course with its unions.

The changes are essential to slash a $30-an-hour labour cost disadvantage against U.S. plants operated by Japan-based competitors, the auto maker says.

Wages, benefits, pensions and other costs for one hour of labour at the Canadian plants operated by the Detroit Three amount to $77.75, says a company background paper on the coming talks with the Canadian Auto Workers union. The same costs with the Canadian dollar at par against the U.S. currency total $47.50 an hour for U.S. plants operated by Honda Motor Co. Ltd., Nissan Motor Co. Ltd. and Toyota Motor Corp.

“When you look at how uncompetitive we are, you can't say we'll do some things and $1 an hour will do,” said GM Canada spokesman Stew Low. “The status quo just won't do.”


Fucking GM is going to wound the CAW/UAW and cause it's own downfall